Chapter 4 - IMC planning process Flashcards
Describe the customer groups on which consumer research should focus
=> Current customers
=> Former customers
=> Competitor customers
=> New customers
Provide some examples of research techniques fo customer groups
=> Experiments
=> (Micro) Surveys
=> Twitter analysis
Provide potential insights that can be generated by the research techniques of costumers groups
=> Consumer needs (ex: significant change)
=> Most influential characteristics when choosing a brand
=> Most influential stakeholders when choosing a brand
Describe the steps utilized in competitor research
- to find out who are the main competitors
- the sales figures of competitor
- How competitor tries to be perceived ?
- What kind of communication competitor use and what are the goals?
Describe the information sources utilized in competitor research
Primary research
=> Visiting competitor stores (study merchandise displays)
=> Talk to vendors to find out relationship
Secondary data
=> Advertisements
=> Promotional materials
=> Annual reports
=> Websites
Research about what others say
=> Trade journals
=> News
provide some examples of potential insights that can be generated by competitor research
=> Identify major/closest competitors
=> Identify strategies and tactics of competitors
Segmentation principles
You need segmentation variables to classify consumers and aim to create homogeneous segments
describe the observable characteristics that can be used to identify segments
easier to observe :
=> gender => age => ethnic group => income => Education
harder to observe :
=> activities
=> interests
=> Opinions
Describe the segment viability test that can be used when deciding which segments to target
=> satisfy needs better than competitors
=> needs should be homogenous
=> needs should be distinct from other segments
=> segments should be meaningful
=> consumers should be reachable for marketing campaign
Define positioning
an attempt to create and maintain a unique representation of the brand in customers’ minds relative to competition.
7 positioning approaches
=> product attribute
=> competitors
=> application
=> price/quality
=> consumers
=> product class
=> cultural symbol
product attribute positioning approach
=> Often very clear and concise positioning
=> Often when attribute is novel & noteworthy
ex: adapting lights for Audi
competitors positioning approach
=> Very direct, but could also highlight weaknesses
=> Only if really superior compared to other brand
ex : Audi vs BMW
application positioning approach
=> Introduce innovations (reduce uncertainty, show benefits)
=> But also for experiential products
ex : Joy to ride a cabriolet
price/quality positioning approach
=> For brands positioned at extremes of price scale
=> Yet, competition can easily undercut it (by lower price short- term)
ex: only 99 cts
consumers positioning approach
=> Might be perceived as exclusionary (if consumer different)
=> Good if community is desirable
ex : iPod and young’s
product class positioning approach
=> Good if goal is to become standard of product class
=> Exclusionary (e.g., if consumers don’t want sport car for S5)
ex : Audi = Sport car
cultural symbol positioning approach
=> Can be big asset if culture fits and is strongly positive
=> Restricts customers significantly, very exclusionary
ex : Toblerone, Cervin
describe some common IMC objectives
=> Develop Brand awareness => Increase category demand => Reinforce purchase decision => Change costumer beliefs & attitudes => Enhance purchase action => Encourage repeated purchases => Build customer traffic => Enhance firm image => Increase market share
6 factors that can influence the effect of marketing communications effort on sales
- linear effect
- Diminishing return
- Marginal analysis curve
- decay effect
=> When brand stops communication, consumers start forgetting the brand
- wear-out effect
=> Communication can become old
- random effect
=> Snow storm, outcome of soccer game, etc.
Determinants of the communication budget, which should align to the marketing communication objectives
=> crisis situation
=> planning gap
=> organizational characteristics
=> Economics of sales
=> Contingencies
=> Market share objectives
=> Market potential
=> Market Size
=> Economic recession
=> Unexpected opportunities and threats
6 methods for determining IMC budgets
- Objective and Task (=THE BEST)
- Percentage of Sales
- Meet the competition
- What we can afford
- Pay-out planning
- Quantitative model
Objective and Task method for determining IMC budgets
Def.=sum of amounts required to satisfy each objective
=> Best method of setting IMC budgets
=> Used by more than 50% of firms
Percentage of Sales method for determining IMC budgets
Def.=% of current or projected sales
=> Simple
=> Often leads IMC budget to decrease when it should be increased and vice versa
=> Does not allow for special needs (ex: brand extension)
